MANILA – Aboitiz Equity Ventures, Inc. (AEV) on Tuesday reported its net income declined by 55 percent to PHP4 billion in the first half of 2020 from PHP9 billion recorded during the same period last year, reflecting the impact of the lower income contribution of its largest business unit, Aboitiz Power Corporation.
The company recognized non-recurring losses of PHP20 million versus the PHP78 million in non-recurring gains recorded in the previous year, representing foreign exchange losses from the revaluation of dollar-denominated assets.
Without these one-off losses, AEV’s core net income for the first half of 2020 was PHP4 billion, 54 percent from PHP8.9 billion.
Power accounted for 49 percent of the total income contributions from AEV’s Strategic Business Units (SBUs), followed by banking and financial services (39 percent), food (14 percent), infrastructure (-1 percent), and land (-1 percent).
“The current Covid-19 crisis continues to disrupt and impact our organization in different ways. Throughout this, we have given significant attention to our ability to adapt to changes and to prepare for uncertainties,” Sabin Aboitiz, Aboitiz Group president and the chief executive officer, said in a statement.
Aboitiz looks forward to a better economy in the second half of the year as the country slowly opens up and adapts to the new normal.
“For the rest of the year, our goal is unchanged: to remain resilient and for our business units to be in the best possible position when we emerge from this crisis, in order to support the country’s economic recovery. As One Aboitiz, we will continue to be one with the nation in its fight against Covid-19,” he added.
Aboitiz Power Corporation’s (AboitizPower) net income contribution to AEV for the first half of 2020 decreased by 57 percent year-on-year from PHP6.7 billion to PHP2.9 billion primarily due to reduced demand resulting from the enforcement of Covid-related community quarantines, as well as forced outages during the first half of 2020 involving Pagbilao units 1-3, Therma South, Inc. Unit 2, and GNPower Mariveles Coal Plant Ltd. Co. Unit 2.
These reductions offset the decrease in purchased power costs during the first half of 2020, and revenues from Therma Visayas, Inc. and Therma Mobile, Inc., which were both online since January of this year, as opposed to the second quarter of last year.
Meanwhile, AboitizPower’s distribution business recorded an income share of PHP1.7 billion during the first half of 2020, a 7-percent decrease year-on-year, which accounted for 32 percent of income contributions from AboitizPower’s business segments.
The income contribution of Union Bank of the Philippines (UnionBank) to AEV for the first six months of 2020 amounted to PHP2.3 billion, 3 percent lower than the PHP2.4 billion recorded in the same period last year.
AEV’s non-listed food subsidiaries’ (Pilmico Foods Corporation, Pilmico Animal Nutrition Corporation, and Pilmico International Pte. Ltd. -- which includes Gold Coin Management Holdings Limited) income contribution to AEV amounted to PHP795 million for the first half of 2020, 44 percent higher than the PHP552 million recorded in the same period in 2019.
AEV’s non-listed real estate businesses, comprising Aboitiz Land, Inc. (AboitizLand) and its subsidiaries, reported a consolidated net loss of PHP39 million for the first half of 2020 versus PHP60 million in income recorded during the same period last year.
AboitizLand contributed PHP1.1 billion in revenues for the first half of 2020, 20 percent lower than the revenue contributions from the same period last year, amid decreased revenue of the residential business.
For the Infrastructure group, Republic Cement & Building Materials, Inc. reported a net loss of PHP10 million to AEV for the first half of 2020, compared to PHP249 million in income recorded during the same period last year.
This was attributed to the contraction in the demand for cement as construction activities dramatically slowed down, particularly during the enforcement of Covid-related community quarantines. (PR)
